Reverse Dutch Auction Definition

In a reverse Dutch auction, the seller starts with a high asking price which is gradually lowered until a buyer accepts the price. This type of auction is often used in commodities trading, where the commodity being auctioned off is perishable and the goal is to sell it before it goes bad.

Reverse Dutch auctions can also be used to sell non-perishable items, such as in an online auction. In this case, the seller starts with a low starting price and gradually raises it until there are no more bids. The advantage of this type of auction for the seller is that they are more likely to get closer to their desired selling price.